The Critical Role of Supply Chains in Humanitarian Operations and Crisis Response
Explore how resilient supply chains support economic growth, disaster preparedness, and effective humanitarian aid during crises, ensuring timely relief.
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Supply Chain in the Humanitarian Context
Added on 10/02/2024
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Speaker 1: The supply chain is an interconnected system involving flows of goods, people, data and funds. High-performing and resilient supply chains are the lifeline for economic development and growth in countries. Equally, they ensure societies and communities are more resistant towards shocks and disruptions when natural disasters or man-made conflicts cause humanitarian crises. Supply chain and logistics is the backbone of humanitarian operations to ensure affected people survive and receive relief assistance. In the humanitarian context, the supply chain includes different phases, starting with activities to build resilience, strengthen capacities and prepare for future operations. When a disaster strikes, the assessment and planning phases determine the humanitarian program that needs to be carried out. The actual operation phase begins through the mobilization of resources and sourcing of commodities, which are shipped and distributed to the affected population. The quantity and variety of actors involved in the humanitarian supply chain is normally high, and so is the diversity of the roles they play. One of the major stakeholders is the affected population, who are ultimately the recipients of emergency aid. Other critical stakeholders are the national government as designated coordinator of the response, humanitarian agencies as provider of assistance, institutional and private donors who fund the operation, and commercial suppliers who provide products and services. More often, military are engaged as they provide essential heavy assets and equipment. Finally, the media plays a crucial role in bringing attention to the crisis and the relief efforts. From preparedness to distribution, coordination is critical. The activities humanitarian actors are carrying out during the preparedness phase are also embedded in long-term development programs to strengthen the supply chain in and around the respective country. Recent studies have shown that tremendous cost savings and response time reductions can be achieved when investing in supply chain preparedness. The overall supply chain is only as strong as its weakest link. Generating a comprehensive understanding on critical supply chain stakeholders, processes and infrastructure shall therefore be the baseline for any preparedness plan. Preparedness investments can address the enhancement of staff capacity, streamlining of working processes, implementation of IT systems, pre-positioning of relief items, and infrastructure development. Studies on the preparedness investment demonstrate that a holistic funding approach across key preparedness activities generates the maximum impact on the supply chain performance. Investment in only one or two activities, for example only trainings, would result in reduced returns. Once the emergency has happened, the rapid and accurate assessment of needs and infrastructure is of utmost importance. Often, information arrives slowly in the early hours and days because of the chaotic situation and the limitations of access to affected locations. Starting relief operations without having the full picture is therefore the norm rather than the exception. With the best available information gathered in the immediate aftermath of the disaster, humanitarian organizations define their intervention and response plans which determine where to respond, what type of assistance to provide, when it is needed, how many beneficiaries will be targeted, and then estimate the duration of the emergency operation and their exit options. This ultimately supports the determination of funding requirements to carry out the response. To coordinate and deliver emergency operations, personnel are deployed to the affected location. Providing experienced, trained personnel on the ground with sufficient support, such as office space, accommodation and food, as well as equipment such as generators, vehicles or communication, is considered a time-critical responsibility of logistics. The needed goods can be internationally or locally sourced from in-kind donations, pre-positioned stockpiles or procured from commercial suppliers. More often now, cash and voucher programs are set up in parallel to physical goods supply chains. In such programs, it is essential that local markets are able to meet the demand and beneficiaries are not left with the means to purchase with no access or availability to supplies. International transport is commonly performed through air and sea freight services, depending on the time pressure and funding constraints. When receiving large volumes of supplies, the air and sea ports in the affected country often become major bottlenecks. In particular, during the early days after a disaster, delays and congestion can be expected because of limited handling capacity to offload cargo, lengthy importation and custom clearance processes and insufficient availability of local transportation to move supplies downstream to last-mile operational areas. Once the cargo has arrived in the country, or if it has been sourced from local suppliers or taken from pre-positioned stocks, the onward transportation is normally performed in smaller consignments by road, rail, air and sea, or a combination of all. To break down the volumes into smaller batches, transient warehouses or so-called trans-shipment points need to be arranged. A common challenge is the high competition for limited transport capacities created by the numerous organisations in addition to the already existing demand from the commercial sector, which continues to perform business as usual in non-affected parts of the country. The final leg of transportation, also referred to as the last mile, is often affected by damaged or non-existing infrastructure and security concerns. Cargo is moved by smaller vehicles, helicopter, boats or even human and animal-powered transport means. In terms of storage, alternative solutions may be needed, such as temporary tent storage units, train wagons or other buildings. Depending on the type of commodity, the situation on the ground and the frequency of delivery, the final distribution process is established to provide relief items to the affected population. An integral part of supply chain management is also the consideration of how to manage waste, damaged items and too many stocks. Throughout the operation, and in particular in the early stages of the response, the situation on the ground can change rapidly. While preparedness and planning is crucial, decisions shouldn't be set in stone. The supply chain needs to be designed for flexibility, agility and mobility. Proper documentation and data collection during the emergency operation and a comprehensive lesson-learned exercise after the operation should be performed to ensure compliance with donor accountability and to provide feedback on the preparedness planning for the next emergency crisis. For more UN videos visit www.un.org

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